Honeywell Expands Defense Portfolio With $1.9 Billion CAES Systems Purchase

Honeywell International (HON) shares rose Thursday as the conglomerate announced it was buying aerospace and defense contractor CAES Systems Holdings from private equity firm Advent International for about $1.9 billion. 

Honeywell said the all-cash deal “will enhance Honeywell’s defense technology solutions across land, sea, air and space, including new electromagnetic defense solutions for end-to-end radio frequency (RF) signal management.”1 

The company added that the acquisition will boost its established platforms and upgrade positions in several key areas, including work on the F-35 fighter and the Navy’s SPY-6 radar. 

CAES Adds Potential for ‘Continued Growth’

Chief Executive Officer (CEO) Vimal Kapur said that the addition of CAES will advance Honeywell’s position “at the forefront of the defense industry’s most dynamic sectors and sets the tempo for continued growth across our aerospace business.”

CAES has 13 facilities in North America and employs about 2,200 people. 

Honeywell said that the transaction is expected to be completed in the second half of 2024 and accretive to adjusted earnings per share (EPS) “in the first full year of ownership.”

Be the first to comment

Leave a Reply

Your email address will not be published.